19-20

19. Firm X is considering the replacement of an old machine with one that has a purchase price of $70,000. The current market value of the old machine is $18,000 but the book value is $32,000. The firm's tax rate is 30%. What is the net cash outflow for the new machine after considering the sale of the old machine? Disregard the effect of depreciation of the new machine if acquired. A. $47,800 B. $70,000 C. $52,000 D. $40,100 20. A projeet has the following projected butcomes in dollars: $250, $350, aind $500. The probabilities of their outcomes are 50%, 25%, and 25%, respectively, what is the expected value of these outcomes? A. $362.5 B. $89.4 C. $94.5 D. $337.5